Entering the local reporting season it’s unlikely that sentiment toward the domestic housing market could be much worse. By and large, we share the popular concerns with our base premise being, without significant foreign capital or an RBA intervention, Australian house prices must mean revert towards a sensible valuation range...
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Australian dollar gold price has recently broken out to all time highs, and the thesis on gold remains very much intact. It’s a very good time to be an Australian gold producer. In this wire, we look at the sector from a bottom-up perspective to see where there is relative...
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It is important to find ideas where companies can generate cash flow growth regardless of the macro backdrop. Here we look at five stocks that pass our filters and would look attractive on market weakness.
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Last July we highlighted 5 stocks that we believed could double cash flow over 5 years. Twelve months on we review how they have performed, and discuss the reasons for the one that disappointed.
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The long term thematic of having Australian primary industry “feeding the world” remains a compelling one. Here we discuss our analytical approach and focus on one stock that is trading on 12 times earnings, with high single digit earnings growth and a >5.5% fully franked dividend yield (FY19).
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It is a useful strategy for investors to have a watchlist, as discussed in our Megatrend framework. We tend to have 40-50 stocks that we will be watching in detail that we feel may be suitable at the right time. So... when is the right time?
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Using two examples that fit into our Megatrend framework of rising Asian consumption, we highlight how we assess allocating capital to one stock in our universe that illustrates strong free cash flow versus another stock in the same sector, essentially giving the same sector exposure.
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New Century Resources is up significantly since we first acquired it and is trading approximately in line with our original share price target. Clearly, the company has been through a period of price discovery with strong promotional support. Hence, we felt a need to justify our purchase but also outline...
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We have used the megatrends framework as a template for several years, simply as a way of formulating a framework for how we start filtering down the investible universe into stocks that we ultimately focus on. We revisit this every 6-12 months to assess where the opportunities are to find...
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­­­Whilst we use a megatrend framework to identify a narrow subset of stocks that we then spend more time understanding, we ultimately invest capital on a stock by stock, bottom up basis. We focus heavily on cash flow growth as a key metric of how we look to invest money....
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